If you are a content creator posting videos and photos to one of the subscription based social media platforms there are some tax issues to watch out for.

Over the last few years, particularly since the covid pandemic, many individuals have turned to subscription based social media platforms where users can create, sell and view content. Sites such as OnlyFans, Fansly, Unlockd, Fanvue, Fans, FanCentro, MYM, AdmireMe, AdultNode, JustForFans, LoyalFans, Fagage and Patreon are currently flourishing, and the market is continuing to grow.

Producing content which that is protected by a paywall and can be viewed by fans paying a subscription can be an extremely lucrative and safe way of building an online fanbase.

Escorts, webcam artists and models are among some of those who have expanded their services and supplemented their income using these platforms, whilst other creators had no experience in these areas and have made profitable businesses since the start of lockdown.

Successful content creators can easily generate an income that appears to be above the VAT registration limit (currently £85,000 per year). However, this may not be as straightforward as it first appears. Depending on the country of origin of the platforms being used, and the type of services being provided, some of the income may fall outside the scope of VAT. Alternatively, where the income does fall within the scope of VAT, arrangements can often be made with the platform to refund the content creator’s VAT liability.

Getting VAT wrong can be very expensive so it’s an area where you need to be very careful. If you are making serious use of one or more of these platforms I would strongly advise getting help from expert accountants who understand your business. They can assist in their ability to interpret these VAT rules in your favour and where necessary deal with the relevant platforms on your behalf.